African start-ups continue to attract investor interest, as shown in the latest report from digital economy consultancy TechCabal Insights. The month of October 2023 was marked by an increase in funding, with a total amount of $144.3 million mobilized, an increase of 23.6% compared to the previous month.
However, despite this increase, there is a decrease of 22.6% compared to the same period the previous year, where start-ups managed to raise $186.4 million. This decline can be explained by the global economic context, marked by uncertainty linked to the COVID-19 pandemic.
In terms of distribution of financing by sector of activity, it is the energy sector which comes first, with 57.9% of the funds mobilized. It is followed by fintech (20.1%), healthtech (6%), agritech (5.3%) and edtech (3%). These figures demonstrate the growing importance of advanced technologies in key sectors of economic development in Africa.
Geographically, East Africa saw the most fundraising, with a total of $79.1 million. It is thus ahead of Southern Africa ($36.8 million), West Africa ($18.9 million) and North Africa ($9.5 million). This observation highlights the dynamics of economic development in these different regions of the continent.
Among the start-ups that managed to raise funds in October 2023, we find major players such as M-Kopa, a Kenyan financing platform which managed to raise $65 million, Stitch, a South African fintech which raised $25 million, and WATT, a Nigerian cleantech which raised $13 million. These examples demonstrate the potential for growth and innovation found within the African start-up ecosystem.
In conclusion, despite an uncertain global economic context, African start-ups continue to attract the attention of investors, with a significant increase in financing during the month of October 2023. This demonstrates the dynamism and growth potential of these young companies, which contribute significantly to the economic development of the African continent.